Comments of the Week: Dec. 17 - 21

December 21, 2012 9:00 AM

On how to get bankers to behave:

"Overall, we do not need as much new regulations. We need solid robust enforcement of existing regulations that will and can lead to personal liability."

Related Article: Sparing the Rod Is Spoiling the Bankers

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On how to get bankers to behave:

"Compensation plans tied to short-term performance may play a major role in the problem. The move toward longer-term incentives is a move in the right direction."

Related Article: Sparing the Rod Is Spoiling the Bankers

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On the case against state-owned banks like North Dakota's:

"So the state-owned bank is socialistic? You prefer the criminal model established by the likes of HSBC?"

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On big banks flunking the OCC's recent risk tests:

"Imagine the surprise of the CEOs of the 'Too Big to Behave Banks' when the friendliest of federal bank regulators suddenly applied a real test of their management and graded it on actual performance rather than some concocted perception."

Related Article: Big Banks Flunk OCC Risk Tests

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On an FDIC report urging banks to expand services to the underserved:

"If government agencies/employees had to show earnings or monetary profit for what they do, they wouldn't be saying things like this."

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On the need to define the federal government's role in the housing market:

"The Housing Commission of 1981 made recommendations that if followed would have avoided the systemic failures of 1989 and 2008. Those who broke the system aren't in the best position to fix it."

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On B of A CEO Brian Moynihan urging a careful move away from the GSEs:

"Once again Moynihan hits the nail on the head … To do anything other than proceed with great caution and much discussion in all areas, geography, product, impact analysis, financial and human cost analysis, securitization, etc., would be disastrous."

(Image: Bloomberg News)

On Sierra Vista Bank entering a private equity agreement priced at 66% of its book value:

"The reality is that many community banks, especially the smaller banks with assets of less than $500 million have few options. And 66% of book value is better than zero!"

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On the FDIC's need to bolster community banks:

"Most small banks simply cannot afford to make consumer loans. The result is the consumers wind up going with mortgage brokers who may or may not … have their best interest at heart."

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On Dodd-Frank serving the interests of large banks:

"Of course the 'Too-Big-To-Fail' banks must be overjoyed. They are now being rebranded, or better worded, knighted by the regulators, as Global Systemic Important Financial Institutions, leaving the rest of the banks in the de-facto category of unimportant and perhaps even irrelevant banks."

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On overdraft revenue rebounding after a sharp decline that began in 2008:

"Strange to read such an upbeat article on a product so abusive to depositors. The overdraft product continues to exist as a classic example of federal financial regulatory policy designed to unfairly advantage banks over consumers."

Related Article: Overdraft Revenue Begins to Rebound

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On why mobile may prove fruitful to banks, despite the failure of past innovations:

"Rearview mirrors also reveal the works of Edison, Ford, Firestone and Jobs. Which is to say that there is more to hindsight than just failures. Mobile should be a priority for banks. Why? Because it is something their customers want."

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